Is your business laser focused about the customers it is targeting?
What impact would it have on your business if you were to have clearer and more focused approach on prioritising new and existing customers effectively to grow revenues?
A common problem we see here at Vertical when working with clients on their commercial strategy, is that businesses fail to identify their key target customers.
This needs to be clear for everyone in the business and each customer segment needs to be prioritised accordingly, to identify where the best chances of growing revenue are.
This can have a really negative impact on a businesses ability to grow its revenue with any sustainability if not done or done badly.
Here are some of the potential consequences for you to think about if your organisation is struggling with this issue:
Ineffective marketing: If a business doesn't know who its target customers are, it may end up wasting resources on ineffective marketing campaigns that don't resonate with the right people. This can result in low conversion rates, wasted advertising spend, and reduced revenue.
Missed opportunities: Without a clear understanding of who their target customers are (and their specific needs), a business (and its sales team/s) will miss opportunities to generate revenue and expand into new markets. You find that you waste time with the wrong prospects and possibly miss an opportunity to create new products. Are pitching to the wrong people?
Weak customer relationships: From your existing customer base do you prioritise the customers with the most potential? If a business is unable to prioritise its customers effectively, it may struggle to generate revenue and build strong relationships with key clients. Are you spending too much time with the ‘wrong people’. You are leaving cash on the table
Lack of focus: Without a clear sense of who your customers are and what they need, a business may lack focus and direction. This can make it difficult to make strategic decisions, prioritise initiatives, and allocate resources effectively.
Overall, a failure to articulate target customers or prioritise them can undermine a business's ability to succeed in a competitive marketplace. It's essential for businesses to invest time and resources in understanding their customers and ensuring that their needs are front and center in all aspects of the business. For more information on how we can help please reach out to us on ian@verticalevolves.co.uk for more information.
